Seah Gulf Special Steel said it has sealed two agreements for its new steel pipe factory in Dammam being built at an investment of more than SR1 billion ($266.3 million) - an EPC contract with Saudi-based Sendan International Company for its construction and a land lease agreement with King Salman Energy City (Spark).
Seah Gulf Special Steel is a joint venture between Saudi industrial investments company Dussur and Korean group SeAH Changwon Integrated Special Steel Corporation.
Announcing this at the signing ceremony, Dussur said it had awarded an engineering, procurement, and construction contract (EPC) contract worth SR 260 million ($69.2 million) to Sendan International Company, a leading Saudi-based construction group, for the new steel factory.
A major player in Saudi industrial sector, Sendan has developed a strong position as a contractor in the oil, gas, petrochemical, power, water, and mining in the kingdom.
As per the deal, the entire project will be completed in 34 months and the commercial operation of the factory will begin by 2025, said the statement from Dussur.
A major industrial group in the region, Dussur is owned by the Saudi sovereign wealth fund Public Investment Fund (PIF), state oil giant Aramco and global diversified chemicals company Sabic.
Also at the ceremony, Dussur inked an industrial land allocation agreement with Spark for the establishment of its new steel pipe factory in Dammam.
Under this, the Saudi energy park will allocate SeAH Gulf Special Steel a land area of 177,845 sq m to build its factory, which, once operational, will have a production capacity of 20,000 tonnes per year.
Dussur pointed out that the importance of SeAH Gulf Special Steel factory lies in the opportunities of attracting global expertise and localizing the stainless-steel pipe industry, by serving the oil and gas sectors in addition to energy and water.
On choosing Spark for its project, Dussur said it was the best pick as it is one of the most developed industrial cities in the kingdom. Besides, it also provides integrated industrial services including electricity and gas supplies, in addition to water and communication services, it added.
Seah Gulf Special Steel pointed out that once the factory starts operation, around 240 technical and engineering job opportunities will be available for Saudi youth. Also it will help the kingdom reduce its dependence on imports for strategic goods into the country.
Dussur CEO Dr Raed Al Rayes said: "We had established our company as a sustainable investment model to help develop key industrial sectors and their associated value chains in the kingdom. This joint venture is an important achievement that will meet the current demand for stainless steel pipes in Saudi Arabia and also the Mena region."
It is in line with Dussur’s mission to empower the industrial sector, maximizing the developmental impact through the transfer and localization of industrial knowledge, creating professional jobs for Saudis, and attracting foreign direct investments, following the objectives of the Saudi Vision 2030," he added.
